For the second trading session in a row yesterday the Maycontract dipped lower at the open, but was unable to completelyfill in the chart created between last Wednesday’s $2.18 high andThursday’s $2.20 low. And once that early selling pressure driedup, the market was free to rally on waves of buying by both localand commercial traders. The May contract pressed higher throughoutthe session, spiking above the $2.30 level at the closing bellbefore settling at $2.299, a 7.3-cents advance on the day. Atechnical difficulty at Nymex last night suspended the after-hourscomputer-only Access trading session.

Cash prices, which continue to be well bid, were viewed as asupporting factor in Monday’s futures strength sources said. NGI’sHenry Hub price for today is $2.23. “Futures imitated cash today,”said Ed Kennedy of New York-based Pioneer Futures. “Futures wereweak at the outset [Monday], but as cash prices ratcheted higherthroughout the morning, so did the futures,” he said, adding that alarge commercial trader, short in both markets was seen as anaggressive buyer.

Although he felt it was still too early to make a predictionabout the direction of the market heading into the May settlementWednesday, a Gulf marketer admitted the supply-demand picture wastainted in the bulls’ favor. “Funds are long, Houston is short,basis is tight. All indicators point to higher prices,” hecontinued.

Kennedy agreed that May is a difficult call. “If cash staysstrong then May [futures] will have a difficult time moving below$2.26. “But watch out for June,” he warns. “Once May is off theboard, June could come crashing back down to earth.” June finishedat $2.325 Monday, up 7.2 cents for the day.

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